Brent crude oil climbed to $107.63 per barrel on Thursday, September 10, while West Texas Intermediate rose above $100, according to Reuters. The sharp rally followed escalating attacks linked to the US-Iran conflict and disruptions to oil shipments through the Strait of Hormuz, renewing concerns about higher fuel costs for motorists and households in Nigeria.
Crude Oil Surge Raises Fresh Concerns for Nigerian Petrol Market
The latest increase has renewed concerns about the Nigerian petrol market, where prices have already climbed sharply in recent weeks. Industry data reported by The PUNCH showed that imported petrol was selling at an import-parity price of about N1,310.64 per litre in early September, compared with N1,265 for petrol from the Dangote Petroleum Refinery.
The Strait of Hormuz is a major global oil transit route, and disruptions to shipping have raised fears of tighter crude supplies and higher transportation costs. Reuters reported that attacks on tankers and uncertainty over the duration of the conflict have increased pressure on the oil market. With traders reassessing supply risks, a prolonged disruption could keep crude prices elevated and affect the cost of refined petroleum products.
Dangote Refinery Faces Changing Market Conditions
For Nigeria, higher international crude prices could increase the cost of imported petrol and put pressure on refiners' pricing decisions. The Dangote refinery has already adjusted its petrol prices several times in recent weeks, with its gantry price reaching N1,265 per litre on August 29.
The Dangote refinery remains a major supplier of petrol to the Nigerian market. The US Energy Information Administration reported that Nigeria's seaborne petroleum product shipments averaged 561,000 barrels per day in the second quarter of 2026, supported by increased production at the refinery. However, the refinery is also exposed to changes in crude oil costs.
Its chief executive, David Bird, recently warned that global fuel shortages could persist beyond the current Iran conflict, citing damage to Middle Eastern refining infrastructure and the need to rebuild inventories.
What Motorists Should Expect
A fresh increase in international crude prices does not automatically mean petrol prices will rise nationwide. The actual impact will depend on crude procurement costs, exchange rates, import-parity prices, distribution expenses and pricing decisions by refiners and depot operators.
Legit.ng earlier reported that petrol landing cost has risen to N1,311 per litre, prompting depot owners across major Lagos loading hubs to withhold sales as rising replacement costs raise concerns about another increase in petrol prices. The development comes as international crude prices approach $105 per barrel, putting additional pressure on the cost of importing Premium Motor Spirit (PMS) into Nigeria.
